According to CreditCards.com, the problem is getting worse, and people are spending more money. The Federal Reserve says that the average household with a credit card owes $6,000 in credit card debt.
So if you want to trim the fat and reduce the money you owe, start with your smallest balance first. You can also look into transferring balances to credit cards with lower interest rates.
"The average U.S. household spends thousands of dollars a year on non-essentials. If you're charging these luxuries and carrying a balance, you're spending an average of about 18% more for the privilege," said Ted Rossman, industry analyst at CreditCards.com. "Would you have chosen the same car, plane ticket or restaurant if the price were 18% higher?"
According to the American Bankers Association, about 60% of credit cardholders carry balances from month to month. The Federal Reserve says the average household with credit card debt owes $5,700.
"For those in debt, I recommend balance transfer credit cards and looking for ways to boost your income and cut your expenses," Rossman added. "It's not necessarily about going without - it's about being an educated consumer and spending less on things you'll still enjoy. Cutting a monthly expense is especially valuable because it comes up again and again."